Tall Stand Timber stock has an expected return of 16.8 percent.What is the risk-free rate if the risk premium on the stock is 12.1 percent?
A) 4.70 percent
B) 5.30 percent
C) 5.67 percent
D) 6.55 percent
E) 7.17 percent

Name: Tall Stand Timber stock has an expected return of 16.8 percent.What is the risk-free rate if the risk premium on the stock is 12.1 percent? A) 4.70 percent B) 5.30 percent C) 5.67 percent D) 6.55 percent E) 7.17 percent
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Question

Quizplus · Accepted Answer

Risk premium = 16.8 - 12.1 = 4.70 percent

Tall Stand Timber Stock Has an Expected Return of 16